Continuing the thoughts on metrics..
3) The Three F’s – When beginning to consider innovation metrics – there are three main “F”’s that you need to measure – Form, Flow, and Function.
a. Form – Form is your ability to perform each part of the innovation process.
b. Flow – Flow is your efficiency at both passing stuff through the individual elements of the process as well as the overall process itself.
c. Function – Function looks at the program as a whole and its ability to achieve organizational goals, and the organization’s innovation capacity as a whole.
Taking the innovation process you’ve developed in section 2 (see last week’s post) above, you then go through the process figuring out what metrics are most appropriate taking into account the 3 F’s. For most companies, the metrics will be broadly split into two sections – the form and flow of the pipeline itself – and the function of the program as a whole:
Some good examples of Form and Flow metrics:
1) Problem Identification and Definition stage:
- Number of Problems submitted for consideration (form)
- Number of individual event sponsors recruited (form)
- Number of Event Charters defined (form)
- Number of Events accepted and set up (flow)
- Number of Events in each of the key corporate strategic areas (flow)
2) Idea Collection, Building and Management
- Number of ideas/builds collected (form)
- Number of Event Visitors / Contributors (form)
- Number of Idea/Build Authors (form)
- Number of ideas reviewed and concluded (flow)
- Number of Ideas passed through to concept development (flow)
3) Concept/Opportunity Development
- Number of Prototypes developed (form)
- Number of ideas going into Project Management (flow)
- Potential value of ideas going to Project Management (flow)
- Average time idea spends in Concept Development (flow)
4) Project Management
- Average time to project completion (form)
- Number of projects completed versus target (function)
- Number of projects currently in the pipeline versus target (function)
- Effective capacity versus capability (function)
5) Initial Launch
- Target sales/cost reduction/process improvement versus actual (form)
- Customer satisfaction (form)
- Customer uptake versus local competitor/alternative (form)
- Number of Launches proceeding to Expanded Launch (function)
- Number of Launches failed (function)
6) Revise, Expand, and Re-Launch
- Contribution to profit margin from innovations
And for Innovation Function: